The market is tired, so let’s book profits on D.R. Horton (DHI) and Peloton Interactive (PTON).
Note that I marked the cash in hand for PTON at the recommended go as low as price, since the premium dropped shortly after I recommended the position and never hit the stated midpoint.
I am also recommending we roll our Intel (INTC) put up to continue chipping away at our net debit.
DHI Nov Week Two (11/13) 65 Put
Current Stock Price: $73.11
Cash in Hand: $0.41
Action: Buy to close the DHI Nov Week Two (11/13) 65 Put
Current Option Price: $0.02-$0.05
Recommended Limit: Set your initial limit order at $0.04, but adjust as needed to close today
Profit: $0.37, or $37 per contract
Rate of Return: 0.6% in three days, or 69% on an annualized basis
INTC Nov Week Two (11/13) 45 Put
Current Stock Price: $45.52
Net Debit: $6.36
Action:
- Buy to close the INTC Nov Week Two (11/13) 45 Put for around $0.16
- Sell to open the INTC Nov Week Four (11/27) 46 Put for around $1.20
- Set your initial credit limit at $1.04, but adjust as needed to roll today
New Net Debit: $5.32
Potential Rate of Return: I am targeting breakeven for this position.
PTON Nov Week Two (11/13) 88 Put
Current Stock Price: $110.15
Cash in Hand: $0.50
Action: Buy to close the PTON Nov Week Two (11/13) 88 Put
Current Option Price: $0.05-$0.06
Recommended Limit: Set your initial limit order at $0.06, but adjust as needed to close today
Profit: $0.44, or $44 per contract
Rate of Return: 0.5% in three days, or 61% on an annualized basis